A-LevelEconomicsInternational Trade and Exchange RatesOct/Nov 2025Paper 1 Q281 Mark
Between June and the end of July 2016, the UK pound sterling depreciated by 11% against a basket of currencies of the UK's major trading partners. The diagram shows the original aggregate demand curve AD₁ and the original aggregate supply curve AS, for the UK economy before June 2016. The equilibrium is at X. [Figure 28.1] What would have been the new equilibrium for the UK economy as a result of the depreciation of the pound sterling?
APoint A
BPoint B
CPoint C
DPoint D
✓ Correct Answer
The correct answer is A: Point A
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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